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First Move with Julia Chatterley
Tech Stocks Bounce again, Bond Yields Settle again, and GameStop Soars again; European Central Bank Acts to Contain Rising Rates; The CEO of Connections App, Bumble, Talks Pandemic Dating and Earnings. Aired 9-10a ET
Aired March 11, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:18]
JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here is your need to know.
March madness. Tech stocks bounce again, bond yields settle again, and GameStop soars again.
Bond buying boost. And European Central Bank acts to contain rising rates.
And lifting love. The CEO of connections app, Bumble, talks pandemic dating and earnings.
It's Thursday, let's make a move.
A warm welcome once again to all our First Movers around the globe and there is plenty of good news to bring to you today.
The U.S. emergency aid bill is finally agreed. The tech bulls are back. Bonds have been calmed, help by the E.C.B. bombshell, or shall we call it
bond-shell; and it's high fives at the NYSE, too. Let's get to it.
Gaming stock, Roblox gained more than 50 percent on its first day of trade yesterday, and today's new comer is South Korean e-commerce giant, Coupang.
We've not all the details on that, plus, the NYSE Vice Chairman John Tuttle will join later to give his take on the lifting's lift and what we are
seeing broadly in the markets.
And from listing lift to listing love as I mentioned, we'll also be joined by the CEO of the social media and dating app, Bumble, to talk about their
first earnings since going public last month.
And now to boss buzz and it is volatile. The NASDAQ is up 1.5 percent premarket, similar, if you remember to the gains that we saw yesterday that
then dissipated throughout the session.
European stocks meanwhile are broadly higher. The E.C.B. not hanging around, either. They're stepping up to their bond purchase program, too.
To Asia now, Chinese shares broke their recent losing streak with the Shanghai Composite up more than 2.3 percent, and we are continuing to see
the U.S. stimulus surge being priced into global stocks, but the underlying recipients of this support matters so much more including another 712,000
Americans filing for first-time benefits in just the last week alone.
Wow, there's lots to get to. Let's get more on all of this in our drivers.
Paul La Monica joins me now. Paul, as I mentioned there, this time yesterday, we were talking about what -- 1.5 percent gains for the NASDAQ
and then we lost them and I also want to mention GameStop as well because I was watching that throughout the session. That surged and made highs that
we saw back in January, but then lost 50 percent once again over the course of a 30-minute trading session.
Rather than me -- no, rather you than me explaining what on Earth is going on in these markets right now, Paul, so give me your take.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, I mean, quickly on GameStop, I mean, at this point, Julia, you might as well put your money on black or
red at the roulette table. It's just that insane of a gamble right now.
But with the broader market, there's obviously optimism about that $1.9 trillion stimulus package that has now been passed by the House and Senate.
It is going to be signed by President Biden.
So, there are hopes that people that need the most economic help are going to be getting more and you already noted it as well that 712,000 people
filing for weekly unemployment claims, yes, that's lower than a week ago, but it's still extremely elevated.'
The E.C.B. obviously not taking its foot off the gas pedal with more stimulus. The Fed likely to show more support for stimulus when it meets
next week.
So I think right now, concerns about inflation running too high have taken a backseat again because investors are excited that stimulus is coming and
that should be good news for the economy, it should be a good news for corporate earnings as well, and hence, that is why we're seeing a stock
market rally.
CHATTERLEY: Yes, and fundamental stocks, too, perhaps catch up with some of the valuations that we see more broadly as a result. All of these things
are very much tied and cyclical, obviously, also fueling some of the optimism that we are seeing in these unicorns stampeding to market as well.
Roblox, among them and we talked about it yesterday, but I don't know, I'm not sure either of us imagined a 50$ billion valuation, because that's what
we're looking at, I think, if the premarket gains that we're seeing come to fruition when this market opens.
Paul, what do you make of this because you spoke to the CEO, too.
LA MONICA: Exactly. It's stunning. I mean, the stock rose more than 50 percent yesterday, about $45 billion valuation, up again premarket.
[09:05:01]
LA MONICA: The CEO of Roblox, when I spoke to him, he is optimistic about the company's growth. They are not yet making money but the revenue growth
is stunning and what he is really interested in, I think, going forward, two things; one, there's this perception that obviously, Roblox is really
just for tweens and even though younger users make up the majority of that more than 30 million active user base, he noted that the 17 to 24-year-old
group is starting to grow at a more rapid clip than the tween demographic, which is interesting.
It shows maybe that you've got bored high schoolers and college students looking to play Roblox and also, he said that right now, most of the money
is coming from selling their virtual currency, Robux that users can use to buy goods in the game, but they're looking to trying to do and more needed
advertising that makes sense as well.
Things like for example, if you're going to wearing Nike shoes in game, that's a way for Nike for example to advertise in a more organic way than
say you're walking around in your Roblox world then all of a sudden, there is an Air Jordan billboard staring right at you.
CHATTERLEY: Yes, they are all spenders of the future. They're all in the younger proportion of the users of this, people that can go to their
parents, and say, hey, I have seen this, and I would like it please for Christmas or birthday.
But, you know, the standout fact for me, Paul when I was wading through all the information on this, Roblox users spent 22 billion hours on the
platform and explored an average of over 20 different experiences each month. Wow. That's a monetizable number if ever I saw one.
LA MONICA: The CEO said he was not worried about competition, obviously, a lot of other games out there attracting interest, Fortnite and Among Us and
what have you. There is still a lot of very engaged Roblox players out there.
CHATTERLEY: Yes, I hear, digital currency and my ears peel and I see 22 billion hours and all sort of things go on in my brain. You don't want to
know, Paul La Monica. Thank you so much. Great to have your insights on that.
We are going to be talking about this much more in the future, I can see.
All right, the European Central Bank made no changes to its rates or pandemic stimulus program, but says, it expects to significantly step up
bond buying to combat rising yield across the region.
John Defterios joins me now. I make that a whopping great change to its programs quite frankly, when they are making this announcement, they are
signaling loud and clear that as much as -- I mean, German, French and Dutch yields out to 10 years. They're still zero, let's be clear, but they
are not holding back. They're stepping in here and saying we will keep rates down -- really down.
JOHN DEFTERIOS, CNN BUSINESS EMERGING MARKETS EDITOR: Yes, this is a very delicate balancing act, I would say, Julia, and that is for Christine
Lagarde and the governing council here. They want to show everybody they are on guard when it comes to those higher yields and that pressure we see
coming from the United States, but not to micro manage the process.
But they didn't want to lose the opportunity to just send a signal back out again because they have been holding back the purchases of the bonds over
the last three weeks.
So, in the statement that they put out for the E.C.B. and also in the press conference with Miss Lagarde, she said they will have a higher rate of
purchases over the next quarter and then she circled back in the press conference in the last 25 minutes to say, significantly higher.
They do have this arsenal of 1.8 trillion euros to use through March 2022. They don't believe perhaps, they'll have to spend it all, and that is the
market view. That's some $2.2 trillion. But the continuity is there, but she wanted again, reinforce the fact that the downside risk is coming from
the coronavirus and they will act accordingly until the coronavirus phase, as they say, is over.
I also thought it was quite interesting, if you're sitting around the E.C.B. table, I remember being in Frankfurt during the different meetings
over the years, they cut a break today, if you will, Julia, because we had that 10-year yield in the United States pop up above 1.6 percent.
They go into the meeting today, that pressure was off a little bit, right, so they don't have to overreact, but they have to reignite the belief in
the markets that they are ready to act themselves when necessary and that was a very clear signal coming from the E.C.B. today.
CHATTERLEY: I love the tie that you made there between Europe and the United States because it's all for all of these Central Banks. Now, the
balancing act of trying not to spook the markets when there is hopes for recovery, but at the same time saying look, we're not there yet and we
still have to act.
Perhaps Europe is in a better position and the E.C.B. is in a better unfortunate position handling this because if their vaccine rollout had
been swifter, perhaps, the challenge would have been greater -- Europe still faced with big challenges and the vaccine rollout there, slower.
DEFTERIOS: Yes, indeed. It's a great point that you're making and I'll tell you why, because they upgraded their forecast here from the last
European Commission report.
So the European Commission was suggesting 3.7 percent growth. Miss Lagarde was suggesting they could get four percent this year, but they said, they
will manage the process with the balance of keeping the eye on the 10-year yield that you see in the United States and the inflationary pressures.
But they think, inflation will be kept at 1.5 percent this year and in 2022, start to ease off.
So again, the message is, Julia, no panic on the horizon. She did recognize that 13 percent spike we've seen in oil prices in February and this phasing
of the VAT tax in Germany which skewed the inflation numbers for January which was 0.9 percent and quite alarming.
[09:10:41]
DEFTERIOS: So four percent growth in the European Union and then you have 6.5 percent growth in the United States, 6.2 percent within the G-20.
So, again, flexibility was one key word she said, but we are monitoring and managing inflation, which they don't think is a real threat at this stage
with the slower growth and that threat as you suggested because of the delayed vaccine rollout in Europe in particular.
CHATTERLEY: Yes, flexibility, the watch word globally. Quite frankly, I think is a great point.
John Defterios, great to have you with us.
All right, to today's listing now. South Korean e-commerce giant, Coupang often compared to Amazon for its superfast delivery service making its
stock market debut in the New York.
The SoftBank-backed firm raised $4.6 billion giving it a market valuation of $60 billion. It's the largest IPO by a foreign company since Alibaba
back in 2014.
Selina Wang joins us with all of the details. Talk us through Coupang, Selina. What do we need to know?
WANG: Julia, we've seen that this IPO has priced above target. So, so far, investor interest in this IPO is red hot. Now, Coupang often dubbed the
South Korean Amazon was founded in 2010 by Bom Kim.
It is known for its extremely fast delivery, same day, as well as service called dawn delivery. So that means, you can put in your order at midnight
and get your package before 7:00 a.m. the next day.
It has also expanded into areas like food delivery as well as streaming. It is clearly taking a page out of Amazon's playbook, not at profitability
yet, and not trying to achieve that until it has gained market dominance.
Revenues however did nearly double last year amid gains during the pandemic, and a boost to online shopping.
Now, this company however has come under increasing scrutiny after several deaths from its employees in in its logistics and delivery unites,
allegedly from overworking.
Labor activists have accused Coupang for being obsessed with efficiency and exploiting its workers. The company, however, has denied any mistreatment.
Coupang has said it is invested heavily in to automation and increasing its warehouse workforce so that the workload will be reduced.
Now, in fact, I recently spoke to a former Board member of Coupang who said that in many ways, this company is out-amazoning Amazon. He says this
company is taking logistics to an entirely new level.
I want to bring up this fascinating statistic from the IPO prospectus, which says that about 70 percent of the South Korean population now lives
within a seven-mile radius of a Coupang logistics delivery center.
So you can imagine why those packages get to people's doors so very extremely very quickly. And I also want to talk about some of the major
gainers here.
Now, Softbank is the biggest shareholder in Coupang. It invested at least $3 billion since 2015 and that stake is now worth $20 billion. I had spoken
to Bom Kim a few years ago, and he said that Masa has always encouraged him to think big, and clearly think big, he did -- Julia.
CHATTERLEY: Especially when you hear terms like out-amazoning Amazon, quite frankly. We'll see when they get to the global stage, but some
fascinating moves going on there in South Korea, and of course, now listing in the United States.
Selina Wang, great wrap as always.
All right, let's move on. An AstraZeneca alert. Norway and Iceland joining Denmark suspending the AstraZeneca COVID-19 vaccine. Italy also banning a
new batch of the company's vaccines, too.
Melissa Bell joins us live from Paris. Melissa, what more do we know.
MELISSA BELL, CNN CORRESPONDENT: Julia, we've seen this growing list of countries announcing that they are spending for 14 days the use of the
AstraZeneca vaccine. As you say, they follow others, that Italy has now joined banning for the time being or putting aside that particular batch of
the AstraZeneca vaccine.
Now, for the time being, we've heard two things. First of all, the European Medicines Agency saying that there is for the time being, no suggestion
that the issues we have seen in some of these countries, which have to do, Julia, with blood clots are linked in any way with that vaccine and that
those specific conditions are not listed as any of the side effects of those vaccines.
We've also heard in these last few moments, Julia, from AstraZeneca itself, saying that of course, patient safety was first and foremost, but really
reminding us of the fact that as a result of those Phase 3 clinical trials and peer-review data, all of the research done on the vaccine so far has
suggested that it was fairly well tolerated.
[09:15:16]
BELL: So these countries now looking into those issues that they have had, some with the particular batch, others putting aside the vaccine for 14
days all together, but of course, yet another blow, Julia, to that European vaccination rollout.
For the time being, the AstraZeneca was one of three that had been approved for use in the E.U. We just heard that the European Medicines Agency add
the Johnson & Johnson vaccine to that list, but that of course, that decision now has to go down to national agencies of the member states. So
it will be some days before those vaccines come online.
And given the supply difficulties in so many European countries, this is of course, yet another bit of bad news -- Julia.
CHATTERLEY: Yes, absolutely, and obviously, a relief, I think that the E.C.B. chose to act today in light of the ongoing vaccine challenges in the
E.U.
Melissa, thank you for laying that out for us there. Melissa Bell.
All right, let me bring you up to speed now with some of the other stories making headlines around the world.
It has been one year since the World Health Organization declared COVID-19 a pandemic. President Joe Biden will deliver a primetime address from the
White House tonight to commemorate the anniversary and discuss what he calls the next phase in the COVID response.
Japan is marking a solemn anniversary of its own. It is 10 years since the worst natural disaster in the country's recent history. A massive
earthquake and tsunami that triggered the Fukushima nuclear meltdown.
People across Japan held a moment of silence to mourn the 22,000 victims.
All right, still to come on FIRST MOVE: the cannabis war heats up as a major U.S. player buys into a blossoming market in Europe. The Chairman of
Curaleaf explains all, next.
And the pandemic had Bumble's dating app abuzz with activity. Can the attraction outlast social distancing? The CEO joins us with her views. Stay
with us. There's more to come.
(COMMERCIAL BREAK)
[09:20:00]
CHATTERLEY: Welcome back to FIRST MOVE live from New York where the tech turnarounds continue. I'm putting a plural on that.
The NASDAQ set to bounce further from 10 percent correction levels hit earlier in the week. The Dow is set to rise to new records after closing
above 32,000 for the first time ever yesterday and news that the E.C.B. is adding to the global stimulus efforts again has helped firm up futures this
morning.
Wow, look at that. The European Central Bank saying it will buy more European debt to dampen down yields and that's helping push U.S. yields
global, too, hence the global effort.
U.S. 10-year yields retreating below that key 1.5 level at one point earlier today, we are just above that at 1.51, the level now.
European yields also heading lower, too.
All right, to a separate market now. The largest cannabis company in the United States growing in Europe, too, in a sizable way. Curaleaf which has
more than 100 shops and outlets in the United States is buying EMMAC Life Sciences in a $286 million cash and stock deal opening key markets
including Germany, Italy, Portugal, Spain and the United Kingdom and here's why perhaps.
According to Statistica, revenue from the legal marijuana market in Europe in 2019 was $0.3 billion. As legalization of recreational cannabis gained
pace, that is expected to rise to $2.5 billion by 2024.
Curaleaf also says it is eyeing the Middle East and Africa for potential opportunities.
Boris Jordan is Chairman of Curaleaf and joins us now. Boris, great and excited to have you on the show and get your insights on this. Europe is
fragmented in a similar way to the United States, whether we are talking about recreational cannabis or we are talking about medicinal use of
cannabis. What's your take on the opportunity in Europe and why the investment?
BORIS JORDAN, CHAIRMAN, CURALEAF: We're very excited about this investment. We are, as you said, the largest operator in the United States.
We operate both in medical states and in adult use states in the United States and we are projected to, you know, $1.2 billion to $1.3 billion of
revenue in that market.
And as the largest operator, we were looking where is the growth going to come in '23, '24, and '25? We looked at the European market. I have got a
long history in datacenters and other investments in Europe and I felt very, very comfortable with what was going on.
We've got medical markets today largely, pharmaceutical-type markets in Europe and the states that you mentioned and now, we're heading toward
Switzerland and Holland reviewing pilot projects in adult use.
I think with Angela Merkel stepping down in Germany in September, we understand that there are initiatives to take Germany into the adult use
markets. They are the largest medical market in Europe, but we think they'll probably start reviewing the adult use legislation.
If Germany goes, as you know, the domino effect could go along all of Europe. Israel is also looking at adult use legislation this year.
So we think that Europe presents a huge opportunity with over 700 million people in the greater European area, a potential market twice the size of
the United States over some period of time.
CHATTERLEY: You know, it is interesting to sort of compare and contrast the different use and the opportunities in Europe versus the United States,
even with what we see at the state level with opening up and greater allowance of use in the United States.
It's challenged by the Federal rules for businesses, at least, over the ability to bank, for example in cannabis and what operations you can do and
have as a bank transacting with cannabis companies. How does that compare in Europe, too, as a big company going there and looking at the
opportunities?
JORDAN: So the European situation is very different. In Europe, the medical cannabis market is legal on an E.U. basis, and so you can bank at
any bank.
In the United States, there's a different set of rules. In the United States, we have to bank with local state banks. We cannot bank with the
federally regulated banks.
That will change this year in the United States as the Biden administration is moving to pass the Safe Banking Act, which will allow us to operate with
all of these banks.
But in Europe, and that's why Curaleaf's acquisition, it will ring-fence the European operations completely, and they will be financed from the
European level in order not to breach that legislative aspect of it and the regulatory aspect.
So, in Europe, cannabis companies can bank with any bank that they wish to bank with.
CHATTERLEY: And where is the sort of greatest monetary opportunity here? Because one of the big criticism I heard when all on the excitement two
years ago began in the cannabis space, it was anyone can buy some land and start planting cannabis plantations when legalization takes place.
Is the money and the real opportunity in distributing products and derivatives whether for it is for recreational use or medicinal use, Boris,
rather than actually planting the cannabis and then utilizing it, because obviously, at the moment you have to do both?
[09:25:12]
JORDAN: Yes, we have to do both at the moment because that's what regulations insist on and because we want to have safe regulated product.
But eventually, the future is obviously in branding and distribution. And Curaleaf's strategy is very much, we have two major brands, Curaleaf, our
wellness brand which is the brand that's most likely to come to Europe almost immediately focused on medical and wellness products, and our Select
brand which is our adult use brand, which focuses more on the recreational user.
And so, it is the future. Branding is definitely the future. It is our major reason we are going into Europe because we feel it's going to be an
extension of our already significant brand presence in the United States to go into Europe and start to distribute our brands in Europe through the
EMMAC acquisition.
CHATTERLEY: Yes, and can I ask you what you've seen in terms of demand this year -- just out of interest? I think the world has been so
preoccupied perhaps with other investments, volatility, not to mention the pandemic itself and people perhaps looking at this as a long illness and
the implications of smoking whatever product it is.
Boris, what have you seen in terms of demand and how do you view this market through a prism of the pandemic?
JORDAN: The pandemic has been a real game-changer for the cannabis industry. In the United States, we have seen a tripling of demand. We've
seen older patients coming into our stores, people 70 years and older to buy products to deal with anxiety, sleep problems, pain issues and these
are usually non-smokable products. These are highly formulated medicinal and wellness-type products.
Whether they be a lozenge or whether they be a slow release pill, whether they be a tincture. Those are the types of products that we are seeing
being bought during the pandemic.
We were made essential in the United States during the pandemic. And so all of our stores remained open and we actually increased by 50 percent, our
store count, on both the same this year in the United States.
And in Europe also, we've seen an increase in demand. In England alone, month-on-month, the patients using cannabis are growing by 40 percent.
So these are really staggering numbers and we feel the timing is absolutely right even though the legislation in Europe is slower and a little bit
behind the United States, we're absolutely confident that it will follow suit and maybe, even eventually lead in Europe with their medicinal and
recreational programs.
CHATTERLEY: I mean, you use the word staggering and I agree with you. Clearly, you -- and you can tell me -- whether you think you've jumped
years in terms of bringing people's awareness and raising awareness of the benefits perhaps of this use, again, for recreational, anxiety and
medicinal purposes.
Do you think regulation follows as a result of this increase that we've seen whether it's in the United States and Europe abused by people?
JORDAN: We have found that the legislators in the United States and in Europe are way beyond the public opinion on the issue of cannabis.
The public has embraced it. In the United States, it has 93 percent approval rating for medicinal cannabis and 76 percent for adult use. The
legislators are way, way behind both at the State and the Federal level in the United States.
And in Europe as well, the demand by the population for cannabis products, we believe that the illicit market in Europe is $90 billion at the moment
with a 10 percent penetration throughout Europe of cannabis users today, and we still don't have comprehensive legislation addressing this issue. So
people are forced to go to the illicit market and use products that maybe unsafe.
So it is absolutely imperative for European governments, as well as the U.S. to move quickly.
Look, Mexico just approved adult use cannabis today. Canada has done it. Many countries in South America are moving in that direction. And the two
biggest economies in the world, the United States and Europe have not yet set regulations to deal with this issue and so this has to be done, they're
way behind the population on this issue.
CHATTERLEY: I mean, there are huge safety concerns here. There are also business reasons to do this as well because its lost tax receipts so the
government should look at that, if nothing else.
JORDAN: Absolutely.
CHATTERLEY: Boris, great to have you with us. Yes. Boris Jordan, Chairman of Curaleaf. Great to have you on. We will speak soon, no doubt. Thank you.
JORDAN: Thank you, Julia.
CHATTERLEY: All right, the market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:32:42]
CHATTERLEY: Welcome back to FIRST MOVE. U.S. stocks are open for trading this Thursday. Stocks are higher right out of the gate. This time helped by
the news flow out of Europe.
The E.C.B. announcing that it will quote, "significantly step up its bond buying" to take pressure off rising bond yields. European Central Banks
Chief, Christine Lagarde insisting that she is not engaged in yield curve control. Interesting.
Today's move, however, is a study in contrast. Fed Chair, Jay Powell saying recently that he was merely keeping an eye on rising U.S. yields at this
point. The situation of course between the U.S. and Europe are very different in terms of vaccines.
European health officials though announcing today, they are recommending approval for Johnson & Johnson's one-dose vaccine. Member states will have
to give their individual sign-offs.
Okay, it has been a month since Bumble's big day at the NASDAQ when the online networking and dating company IPO'd for $2.2 billion. The company is
better known for its Bumble app on which only the women can make the first move.
The company also own dating app, Badoo and offers networking and friendship matchmaking.
The company says its apps have been a hive of activity during the pandemic with over two million new U.S. download in the last three months alone.
And joining us now, you can see her there, too, Whitney Wolfe Herd, founder and CEO of Bumble.
Whitney, fantastic to have you on the show. We have so much to talk about, but first, I just want to say, congratulations.
We just showed an image there of you ringing the bell at the NASDAQ and you were holding your son. You have much to celebrate at this moment.
WHITNEY WOLFE HERD, FOUNDER AND CEO, BUMBLE: Oh, it's been a very exciting milestone for our company and we're really grateful and excited about the
opportunity.
CHATTERLEY: Talk to me about that opportunity, because you've made some comments on your earnings call and you said, look, as a result of the
pandemic, the world is going to remain digitized, at least for the foreseeable future. Is that a bad thing? Is that a good thing?
How does Bumble see that as an opportunity and a challenge going forward?
HERD: So, we believe that even in a post-COVID world that the digital dating -- what we've seen through the pandemic, we believe it's here to
stay, and so we think there will be an intersection of digital and physical, but getting to know someone digitally first is here to stay.
[09:35:03]
HERD: You know, over 40 percent of couples meet online and that number is only growing and the fact of the matter is, that you, when you meet
somebody digitally first, you get so much more information on them and you can understand who this person is in a deeper way than seeing someone in a
coffee shop or at an event for example.
And really having the opportunity to vet this person first, the safety and the accountability that you get through digital first connection is so much
deeper than meeting someone in real life and we believe that what we will see is this digital first, get to know each other, understand if you have
chemistry through the product first and then move to the physical world.
And we think that we'll benefit from this significantly because once people do meet in real life and if it's successful they'll tell their friends and
that just keeps fueling this organic fly wheel that we have benefited from over the last several years.
CHATTERLEY: What makes you unique in that regard, Whitney? For all of those reasons, where it is establishing those relationships, where it is
understanding who is that you hope at some point that you're going to meet, whether it's a networking opportunity or for dating, what makes your
product unique in allowing those individuals to get to know each other better? Why come to you rather than anyone else?
HERD: Yes, so Bumble has always been a leader in safety and accountability. From day one, myself and our early team, we were very
strategic about building better tech. We wanted to create an environment that would be safe and accountable.
If you look at what has plagued social media over the years is this lack of accountability and this leaning into anonymity which leads to harassment
and abuse.
And so, we have been very strategic about building tech that is encouraging and accountable and engineers a better experience.
So, on Bumble in particular, our app, Bumble, women send that first message. And this really takes out a lot of the rejection that men have
been faced with over centuries candidly, making this you know, having this pressure to always go first.
And so, we set the relationship off and the connection off on a really positive tone. Not only that, but we've been a leader in these innovative
safety and accountability features.
We have photo verification. We have really great features to block and report, so we can really help you have a better experience.
Not only that, but we were one of the first to market with video chat, and so we've seen that really go through the roof during the pandemic. People
are having their first, second, third, even more building full relationships through video.
I mean, look at what we're doing now? This is all through video, and so, you can see that relationships are really taken shape digitally first.
Not only that, but we have really innovated. We have started to roll out features such as Night-In. This is being tested and rolled out imminently
here in the States where you can actually have trivia night with your match, and so we're creating these opportunities to get to know each other
in a more meaningful way, but always with accountability and, you know, safety at the helm.
CHATTERLEY: Yes, it is funny, I found the quote now. The entire globe has gone through an incredibly lonely period and I think, it plays to what
you're saying about trying to root out some of the rejection and making this about a wholesome meeting rather than something that actually is
negative and it is actually the last thing we need at this moment.
Monetization, Whitney. This is going to be key though. I was just looking at the numbers and the most recent I can find, 42 million monthly active
users as of the third quarter, 2020, you can update me if you want to on that, but just 2.4 million paying.
How do you boost that proportion of people that are actually paying to use what you are saying and arguing is such a unique resource. How do you boost
the number of people that are actually paying to use this because that number should be higher?
HERD: So, we are very confident in our ability to increase the conversion from nonpaying to paying customers and you do this in a bevy of ways. It is
first and foremost through the feature offering, right?
How can you make somebody's experience better? How can you offer them something that gives them access to something they want?
So if you look at the dating world in general, offline, the average individual spends a lot of money in the quest for love and companionship
and community, and we believe that as we continue to invest resources in building new feature offerings and new mechanisms to enhance your
experience, that will in turn increase paying conversion.
Not only that, but marketing our paying feature, so for example, premium -- our premium offering, we have really not even started to scratch the
surface of both in-app and off the app marketing of this feature.
For example, we have a great new offering called Incognito. This was driven by our customers. So many, women in particular, but of course all genders
wanted an opportunity to connect in a way that would protect them from being seen from others. You have folks coming out of divorces or breakups
or people just looking for an extra layer of protection.
So, with Incognito, which is part of our premium offering, you can be invisible on the app only until you basically say yes to the person you're
interested in, can they see you back, and this is an incredible way to take even deeper control of your experience for those that are a bit hesitant to
online date, for example.
[09:40:23]
HERD: This has not been marketed yet, that's part of our premium offering. So you can see that when you build features that people want, this is
really the way you can convert customers and we have a robust plan in the future, but we cannot give any further guidance than what we have already
provided on our earnings call.
CHATTERLEY: That's okay. That's a tease. I don't mind that. I like the idea of just, you know, onboarding people gently and getting them
comfortable with what it means in order to you know, hopefully get them confident enough to get out there and meeting people again.
Whitney, I'm out of time, I have about 20 seconds. You are 31 years old, a woman. You IPO'd, you're managing a family. What's your advice to people,
very quickly, that perhaps want to start a business? Want to get out there, but are afraid.
HERD: Don't be afraid. If I can be in the seat I am in today, really, anyone can. You just have to be willing to fail and I think with failure
comes growth and opportunity, and so don't be scared. Just go out there and follow whatever -- identify whatever you hate in the world, whatever is
hurting you, breaking your heart and find a business opportunity and then just go for it.
What have you got to lose? And if I am here, anybody can be, really, truly candidly and just be brave.
CHATTERLEY: Be brave. Whitney, great to have you on the show. Can't wait to watch the progress. Whitney Wolfe Herd, founder and CEO of Bumble.
Congratulations. What a year.
HERD: Thank you. Great to see you.
CHATTERLEY: Now, it's almost one year since the pandemic forced the New York Stock Exchange to close the trading floor. We will take a look at year
of tests and triumphs at the Exchange, next.
(COMMERCIAL BREAK)
[09:45:00]
CHATTERLEY: Welcome back to FIRST MOVE. Almost one year ago on March 23rd, the New York Stock Exchange shut down its trading floor due to COVID-19. We
remember it well.
It has been a difficult year of adjustment for the NYSE, but a profitable one, too. 2020 was the busiest period on record for companies coming to
market at the Big Board, thanks to a spike in SPACs and the rise of direct listings, both are alternative ways for companies to go public.
There have been so many SPACs in fact that some have warned of a SPAC bubble and just in case you're really confused, a SPAC by the way is an IPO
that helps investors raise money for the purpose of taking another company public in the future.
Today, the New York Stock Exchange is host to a big international IPO, the South Korean e-commerce firm, Coupang as we've discussed.
John Tuttle is the Vice Chairman and Chief Commercial Officer of the NYSE and he joins us now. And John, we have just barely managed to get some time
with you quite frankly because you clearly have been so busy.
The question is, can you keep up this pace for the rest of the year, what are you expecting?
JOHN TUTTLE, VICE CHAIRMAN AND CHIEF COMMERCIAL OFFICER, NEW YORK STOCK EXCHANGE: Well, it's great to be with you. The market continues to welcome
new companies.
If you would have told me a year ago that 2020 would be the busiest year on record for the New York Stock Exchange and more broadly the U.S. capital
markets, I don't think anybody would have believed you, but it's certainly has turned out to be.
In 2021, the pace hasn't slowed down, it's only accelerated. And so we are continuing to see companies come to the equities market, investors warmly
receive them and it not just companies from across the country, it is from around the world.
Like this morning with Coupang, it is one of the largest IPOs of the decade and the largest international IPO since Alibaba.
So the companies are coming from various sectors and geographies and investors seem to be warmly receiving them.
CHATTERLEY: You know, it is fantastic what we're seeing. We've gone through a period, I think, over the last two to three decades where fewer
and fewer companies were coming to market, and yet, perhaps, it is innovation borne out of necessity, the last two years has seen more
innovation in this space than we saw for the prior two decades.
Are you worried there's too much enthusiasm and we've seen the S.E.C. even just in the last few days warning about celebrities coming in and doing
these SPACs.
John, what's your take on what we are seeing and why?
TUTTLE: Well, one of the things that's been encouraging over the past few years is that there are more options for companies to come to the public
market, more tailored to meet their objectives and more tailored to meet their investors' objectives.
So there is the well-worn path of the IPO, which many folks are most familiar with. But also, you're seeing new products like the direct listing
where companies that don't necessarily need to raise capital, but want the other benefits of being a publicly traded company and they also want to
provide democratized and open access to investors to participate in that opportunity are coming to market.
You've seen SPACs, which seem to be the best path for a certain profile of a company that is interested in coming to the market in something that's
more akin to M&A transaction than a public offering.
And now, we have been working with the S.E.C. and received approval at the end of last year to have the direct listing plus capital raise.
So there is more innovation which also means that there are more opportunities for more companies to come to the public market and
ultimately opportunities for investors to participate in that success.
CHATTERLEY: What about for the investors. Do you have a sense of how well they've performed, whether it's a direct listing or a SPAC? How they
perform afterwards? So the investors that got all excited and got involved, how well they're doing afterwards?
It's not your responsibility, but I just wonder whether you have a sense of how well they perform?
TUTTLE: Well, every company is different, obviously. They have different capital structures, different management teams, different corporate
strategies, and they come to market during different market conditions as well. So it is tough to paint a broad brush.
We're encouraged by what we've seen with direct listings. Yesterday, Roblox conducted a direct listing. It was one of the top four largest opening
trades in the history of the U.S. capital markets. It was an opportunity for investors, institutional investors, retail investors and others to
participate. And we have more and more companies thinking and planning for that to be their path to the public market.
So, while every transaction is different, we want to make sure that there are those options that are best suited to the companies and to the
investors, ultimately near term and long term.
CHATTERLEY: Yes, and the idea that there are more options available for investors of all shapes and sizes to come in is a good thing and we've seen
fewer and fewer available over the past several years.
John, talk to me about the structure of the market as well. We have had a lot of attention paid to the rise of the retail investor, the GameStop
saga. What do you see going on and do you think, one that the market plays is fair enough or are the changes even at your level in terms of perhaps
cooling off periods that perhaps may improve the functioning of markets or is it efficient enough?
TUTTLE: So, we've learned a lot over the past few year and particularly the past few months as well and number one is, retail participation in the
market is overall a good thing, having investors -- individual investors that are saving for their children's college education or for their own
retirement have access to participate in the market and have a level playing field, in many cases in that access is a net good thing.
But what we're constantly thinking about is making sure we balance the right investor protections with the right investor access and what we've
seen is that while markets perform very well from a technology standpoint during this time period, there are other components of market structure
they may need to catch up, areas like stock lending, areas like clearing methodologies and settlement methodologies.
[09:50:17]
TUTTLE: So, we've learned a lot and we are going to make sure that we continue to have the U.S. capital market evolve and that broader
infrastructure evolve to meet the ever changing dynamics of the market.
CHATTERLEY: Yes, it is good you have that discussion. John, congratulations. I know your team is working incredibly hard.
John Tuttle there, the Vice Chairman and Chief Commercial Officer and Vice Chairman of the New York Stock Exchange, great to have you with us, sir.
TUTTLE: Great to be with you. Thank you.
CHATTERLEY: Thank you. All right, Prince William speaking out about Harry and Meghan's bombshell interview. How he responded to accusations of racism
within the Royal Family, just ahead.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. Days after Harry and Meghan's explosive interview with Oprah Winfrey, which has left Buckingham Palace
grappling with stunning allegations of racism, Prince William has broken his silence. Here is how he responded to reporters a short while ago while
visiting a school in London.
(BEGIN VIDEO CLIP)
QUESTION: Sir, have you spoken to your brother since the interview?
PRINCE WILLIAM, DUKE OF CAMBRIDGE: No, I haven't spoken to him yet, but I will do.
QUESTION: And can you let me know, is the Royal Family a racist family, sir?
PRINCE WILLIAM: No, we're very much not a racist family.
(END VIDEO CLIP)
CHATTERLEY: Anna Stewart is live from Windsor. Wow, Anna is all I can say. The face of modern monarchy perhaps in that they are willing to respond to
journalists, but I am shocked because we all thought the statement from Buckingham Palace was all we'd get.
ANNA STEWART, CNN REPORTER: Exactly that, and Prince Charles was asked a question about the interview earlier this week on an official visit and he
dodged it.
So, it really took us all by surprise that Prince William would answer one, perhaps, he just felt so strongly that he couldn't ignore it.
Not at least of course there is so much speculation about which member of the Royal Family may have raised concerns with Harry about the color of
their child's skin.
So he has answered it. This is surprising for a number of reasons. There is obviously the content of it. It is not surprising, he said, the Royal
Family are not racist. It is not surprising perhaps that he says he hasn't yet spoken to his brother given what we heard from Harry that their
relationship is currently one of distance.
What is surprising is A, this was an official visit. There is strict protocol involved. It has been surprising that both Charles and William
have been asked questions on these visits, but more surprising that William has also broken protocol by answering it.
Secondly as you said, the statement we had from the Queen right from the top made it very clear that they were going to deal with these issues
privately.
We were not expecting to have any kind of answers even short off the cuff ones following that statement. So that has also been a surprise.
And Julia, I think answering this question is going to mean many more questions are asked, and not just about the issue of race. Harry and Meghan
have made many claims about the Royal Family, about them not listening to their issues regarding to mental health, about not supporting them, even
suggesting that members of the Royal Family were jealous of Meghan's star power.
[09:55:08]
STEWART: So, by one short little answer, I think they are going to get a lot more questions -- Julia.
CHATTERLEY: Yes, I couldn't agree more, particularly given that statement that said there may have been differing recollections of the conversations
that were had as well, but I think you nailed it there. It was something that he felt passionate enough about to answer and be honest about the way
that he feels about the family's approach this, Anna. Fascinating to see what happens next.
STEWART: Yes, we'll be all watching at the edge of our seats, edge of Windsor Castle, at the moment, Julia, but of course, all of this is
happening at the same time as the Queen is dealing with her husband being in hospital.
Prince Philip has now been in hospital for over three weeks. He had a heart procedure over a week ago. He is 99 years old. So the Royal Family has a
lot on their plate at the moment. I wouldn't be surprised that Buckingham Palace are caught by surprise by the fact that Prince William has just
given a very short answer following that statement they gave.
CHATTERLEY: Yes, but a very powerful one. CNN's Anna Stewart, great to have you with us. Thank you for that.
And that's it for the show. If you've missed any of our interviews today, they will be on my Twitter and Instagram page. Just search for
@jchatterleyCNN as always.
Stay safe. In the meantime, Friday, tomorrow we'll be back.
In the meantime, "Connect the World" with Becky Anderson is next.
(COMMERCIAL BREAK)
[10:00:00]
END
